10th October 2015

Competitiveness: Employment issues: Aktuálně.cz: Czechs deserve higher wages. (updated)


Whereas Czech GDP per capita reached 84% of the EU 25 average, Czech gross monthly wage before deductions climbed only to 62% of the EU 25 average in 2014. Deloitte analyst David Marek names the following reasons: 1. High non-wage labor costs, with the share of social insurance on total labor costs reaching 24%. 2. High share of industry contribution to GDP (47.3%, compared with 40.2% in Germany), a structure of economy from which capital owners profit more than employees. 3. Another reason could be low share of employees who join labor unions (13.4% compared with 17.9% in Germany and 27.4% in Austria)... Read more.

According to data published by the Czech Statistical Office, average hourly wage in the Czech Republic in Q2 2015 was CZK 168.8 (around EUR6.2). Employees in the insurance and banking sectors were paid best (CZK 303.2 / little less than EUR11.2), followed by IT specialists. Minimum wage, currently around CZK 55 / EUR 2.03 will rise to CZK 58.7 / EUR 2.17 as of January 2016. Read more.

Read also an article published by the Businessinfo.cz server on how Czechs from the Czech-Slovak border area fill technical job vacancies in Slovakia due to higher wages and the attractiveness of being paid in EUR.

Also, the Government devised guidelines for mapping gender equality in the business sector. Gender audits may be performed either by private or public sector auditors. The intention behind the initiative is to unify standards of gender audits. Audits may cover areas such as recruitment. remuneration, gender equality at the top management level, support to employees returning from parental leave, for example. Read more.

According to a survey conducted in the United States of America, UK and India, a business performs much better if there is at least one female executive in the top management, the Guardian informed. Read more. Click also on an interview with Jana Erbová of AC-T servis, the winner of the 2014 Czech Goodwill and the 2009 best Czech businesswoman prizes.

Almost one-fifth of employees have experienced mobbing, bossing or staffing. Legislative steps against such practices, that, besides harmful effects on individuals, mean also financial losses for businesses, should be taken and new rules should be adopted in 2016 either within the Czech Labor Code, anti-discrimination act or the new act on the protection of whistleblowers. The website sikanavpraci.cz has 2,000 visitors per months, an alarming number. Read more.

Also, craftsmen, IT specialists, engineering specialists, and sales representatives are currently scarce on the Czech labor market. Moreover, one out of five Czech employers finds it difficult to fill vacancies for which no qualification is needed, in manufacturing or logistics, for example, says Manpower Group marketing and recruitment manager Jiří Halbrštát in an e15.cz article. Other problem areas are becoming the sectors of education or health care. Human resource experts at Hays argue that there are enough specialists in the Czech Republic, compared with other European countries (improvements are necessary, though). What needs to be done is to intensify the cooperation between the academic and business sectors.

Members of the American Chamber of Commerce in the Czech Republic